Maclear Project STS Software
- Written by
- Just P2P
- •
- Updated August 1, 2025
Score C-
Founded in 1997 and based in Bulgaria, STS Software develops business software for SMEs. The company generates revenue primarily through custom software development and distributes its proprietary ERP system CTC CABE via subscription model. In 2023, facing prolonged stagnation, the company revised its strategy by abandoning perpetual licenses in favor of SaaS.
The project aims to transform the company into a scalable SaaS provider by completely redeveloping its ERP platform and enhancing its commercial capabilities. This transformation requires hiring a dedicated 11-person team, acquiring server infrastructure, and implementing a two-year marketing strategy to accelerate customer acquisition.
Investment terms
Loan requested : 550,000€
Period : 14 months
Interest rate : 15.1%
Loan requested : 50,000 € capital injection in 2023
This financing request represents 116.8% of 2024 revenue (471,010 €) and 11.9 times the 2024 net profit, demonstrating the strategic magnitude of the project. In the Bulgarian technology sector, where medium-sized companies typically seek between 200,000 € and 800,000 €, this amount reflects significant growth ambitions. The 50 K€ equity injection demonstrates management’s commitment.
Risk metrics
Debt/Equity Ratio : 4.68 (High risk)
LTV (Loan to Value) : 195% (High risk)
Credit History Score : 7/10 (Average creditworthiness)
The debt-to-equity ratio of 4.68 classifies the project as high risk, indicating substantial financial leverage that requires careful monitoring. The 195% LTV far exceeds prudential thresholds, revealing insufficient collateral coverage typical of technology companies with limited tangible assets.
The credit score of 7/10 indicates moderate creditworthiness, reflecting the company’s past difficulties. These metrics collectively suggest a high-risk profile offset by the potential for transformation to a higher-margin SaaS model, requiring rigorous execution of the strategic plan.
Business profile
Geographic Location : Bulgaria (EU member states)
Industry Sector : Technology Services/Software
Collateral Type : Equipment/Company assets
Bulgaria offers significant competitive advantages with development costs 60-70% lower than Western European standards, a qualified technical talent pool, and privileged access to EU markets. The company operates in a sector where demand for ERP SaaS solutions grows 8-12% annually, driven by SME digitalization and cloud adoption.
The collateral comprises mainly recent IT equipment and servers, reflecting the technological nature of the assets. The 2023 strategic restructuring demonstrates the management team’s ability to adapt to market challenges.
Positive / Risk factors
Positive factors
- High share capital and financial resilience
- Adaptability to market changes
- Experienced and multifunctional leadership
- Low fixed cost structure
- Proprietary ERP platform developed
- Secured client contracts for 2025
- Spectacular revenue growth post-2023
Risk factors
- Strong dependence on service outsourcing
- Limited internal R&D capacity
- Legacy ERP system remains obsolete
- Heavy reliance on personal networks
- Lack of established marketing structure
- Critical execution risk for transformation plan
Review STS Software
The C- rating is justified by the problematic combination of a debt-to-equity ratio of 4.68 and an LTV of 195%, constituting multiple significant risks according to the framework. While the company presents promising SaaS transformation potential and a team that has demonstrated adaptability, these mitigating factors cannot compensate for such unfavorable financial metrics.
The secured contracts of 530,000 € for 2025 and spectacular revenue growth maintain the project within the viable category, but require enhanced monitoring given the major structural risks inherent in this company’s project.
